Building permit valuation rises in 2012

LAS CRUCES — The total number of building permits in Las Cruces and the total valuation of those permits rose year-over-year in 2012.

According to statistics released by the City of Las Cruces, 2,459 permits — which include everything from new residential and new commercial construction to fences and reroofs and excavations — were issued last year, a slight increase from 2011 when 2,420 permits were issued.

The total valuation in 2012 was nearly $163 million, up $144 million the year before. That marked the first time the valuation had been more than $150 million since 2009. Part of that was helped by larger projects, such as a new Walmart.

In 2013, the first month of the year saw a backward step in new residential permits. Last year, 47 permits with a valuation of $8.1 million were issued for new residential construction compared to 32 for $6.4 million this year.

Still, Jennifer Sandoval, this year's president of the Las Cruces Home Builders Association, said that she believes there is some momentum in the industry.

"There is a much more positive air," said Sandoval, who is with Robert Hines Construction in Las Cruces.

She said that potential home buyers could become motivated.

"When interest rates start creeping up, that'll have more of an impact on movement in real estate," Sandoval said. "People will start realizing that prices are about as low as they're going to get."

Steve Chavira, manager director with the Home Builders Association, said that the direction of talk has been more on the upswing.

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"Overall the builders are starting to be more positive. Some good things are starting to happen," Chavira said.

Sandoval said that appraisals are starting to align more closely with sell prices.

"That's a sign that sellers are at prices they need to be," she said.

So far for 2013, through the end of January, 183 permits were issued for a valuation of $13.9 million, up slightly from $13.6 million last year. The total number of permits, though, was down considerably as January of 2012 saw 269 permits issued.

What was the difference? While last January had more new residential permits, several permits for commercial fire suppression as well as three permits for new commercial construction boosted the number.

Impact fees

New impact fees for major road and drainage construction were put on hold in December but are scheduled to be implemented July 1. The delay will allow city staff members to close what Public Works Director Loretta Reyes earlier described as "loopholes" the city needs to close to make the impact fees more enforceable.

The new impact fees will be applied to any new residential or commercial development that occurs within the city.

The delay was also endorsed by members of the Las Cruces Home Builders Association. Their consensus was the fees would create additional burdens on prospective first-time homebuyers.

"Other alternatives are the key," Chavira said. "One thing that has come out of this is we're developing a stronger relationship with the city council."

Brook Stockberger may be reached at 575-541-5457; follow him on Twitter @Bstockberger

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